Etsy is a wonderful place for craftsmen and independent artists to own shops and sell their goods because it focuses on vintage and handmade items.
With over 2 million people selling on Etsy, you can also set up a shop and sell your wares. However, as a seller, you have to pay several Etsy fees, both compulsory and conditional, based on what you do in the marketplace.
If you want to become a seller on Etsy, there are some fees you need to understand to help you know how much you’ll be spending to run your Etsy shop smoothly.
Why is it important to Understand Etsy Fees?
It is important to know what Etsy fees you’ll be expected to pay and how much you’ll be spending so that you can make a budget and create a business plan for your shop.
Also, when you pay your fees early, your store will be in good standing, making it possible for you to subscribe to Etsy Plus and enjoy additional benefits geared towards store growth.
When you don’t pay your fees, you risk having your accounts suspended and your rights as a seller revoked.
Types of Etsy fees
Listing Fees on Etsy
Whenever you include a product in your shop, you create a new Etsy listing. Etsy has a flat charge of 20 cents per listing, whether or not the item you’re listing sells. But you can edit a listing for free.
Transaction Fees on Etsy
Etsy charges transaction fees are when a customer buys an item that you have put up for sale at your shop. Transaction fees are only charged when you sell an item.
When you sell an item on Etsy.com, the marketplace takes 5% of the cost of the item and charges it in your local currency. The 5% charge includes the cost of gift-wrapping, shipping, and any other additional charges
Businesses based in Canada or the U.S only have their Etsy transaction fees applied to listed costs without sales tax.
Payment Processing Fees on Etsy
The payment processing fees Etsy charges have a fixed rate depending on the country you’re selling from and your bank account location, and it includes a percentage of the sales price of an item you sell. For instance, Etsy sellers in the U.S pay 25 cents plus 3% of an item’s total sales price.
Advertising and Promotional Fees on Etsy
Etsy has several ways sellers can promote their shops and listings. These methods include promotions, paid advertising, and shopping engine ads. The fees for these advertisements and promotions vary depending on which option the seller chooses, and the seller will find out the cost before deciding.
Understand and track Your Fees
It is often challenging to determine what your Etsy fees will amount to because several factors determine these fees, such as business location, item price, and Etsy subscription and available options.
However, it is helpful to estimate your fees using a Flyp Etsy calculator. It’ll help you track your profit for sales of items as well. You only need to enter your selling price, shipping charge, and other related details to get estimation.